The Compound Mindset: The Life-Changing Power of Playing Long-term Games

“All the returns in life, whether in wealth, relationships, or knowledge, come from compound interest.” — Naval Ravikant

In a world that values instant gratification and quick results, it’s easy to get lost in the short term. Many of us are used to seeking immediate rewards and quick results. However, those who take a long-term perspective in life tend to be more successful.

The best way to succeed in any life area is to make small, consistent investments over time.

Long-term games are habits, routines, rituals and actions that require sustained effort over an extended period. They can be anything from building wealth to improving your relationships.

Playing the long-term game means making choices that may yield little results but are likely to impact our future positively.

It also means thinking beyond short-term outcomes and considering the first and second-order consequences of your actions.

“Wisdom is understanding the long-term consequences of your actions,” Navalsaid.

When we play the long-term game, we are focused on creating a better life for our future selves rather than just our immediate wants and needs.

Whether building a successful career, maintaining a healthy lifestyle, or developing meaningful relationships, playing the long game is a better trajectory for winning the game of life.

When we focus on long-term habits and actions, we are less likely to get caught up in the distractions and temptations of the present moment.

Instead, we are motivated by a sense of purpose and direction, which can provide us with a sense of satisfaction and fulfilment.

One of the key benefits of playing the long-term game is that it helps us to develop discipline and self-control.

We learn to delay gratification and resist the temptation of instant gratification. This can be particularly challenging in a world increasingly focused on instant results and immediate satisfaction.

Playing the long-term game can also help you build resilience. When we are focused on our long-term goals, we can better handle setbacks and challenges along the way. We are more likely to persevere in adversity and bounce back stronger than before.

Long-term games may not provide immediate gratification, but they offer something much more valuable — success that lasts.

When we take the long view in life, we leverage time to compound gains and actions. Warren Buffett is widely regarded as one of the most successful investors of all time.

He is known for his long-term perspective on investing, often holding onto stocks for many years or even decades.

He has famously said, “When we own portions of outstanding businesses with outstanding managements, our favourite holding period is forever.”

His long-view approach has enabled him to build a multi-billion dollar fortune over several decades.

Whether you are compounding money, relationships, or skills, time is your greatest force multiplier,” argues Thomas Waschenfelder.

On the long-term trajectory, we often have to make sacrifices in the short term. That means cutting back on expenses.

Investing time in indispensable skills. Spending more time pursuing meaningful side hustles. However, the payoff can be significant.

Short games only allow for short-term gains

“Short-term and long-term results typically lead to different result, which are often the opposite.” ~ Eben Pagan

Playing the short game of life is putting off tasks and responsibilities in the present moment in favour of immediate pleasure or comfort.

While it may provide temporary relief, it can lead to increased stress and decreased productivity in the long run.

The short-view approach to life is choosing quick-fix solutions to problems rather than investing time and effort into finding more sustainable solutions.

While they may provide immediate relief, they may not address the root cause of the problem and may lead to more significant issues in the future.

Short-game players ignore the long-term consequences of their actions. They make decisions solely on impulse or emotions.

They sacrifice quality for speed.

While focusing on immediate actions may lead to quick results, it can lead to long-term negative consequences, such as lower quality work or negative impacts on relationships.

Short games only allow for short-term progress.

They are about getting what you want right now without a solid foundation to take care of your future self.

Playing long-games is how you predict your future

“I’ve learned that the long game is the shortcut,” says Richie Norton.

A good life is built on a solid foundation of habits, routines, rituals and sustainable practices. Instead of looking for quick wins and shortcuts, build a solid foundation to support your growth and success over time.

People who take the long-term perspective invest in skill-building for long-term personal and professional growth.

While it may require time and effort, the benefits of increased knowledge and abilities can lead to more significant opportunities and success in the future.

In relationships, playing the long-term game means investing in communication, trust, and mutual respect.

It also means making expressing appreciation and gratitude a habit and making time for quality interactions and shared experiences.

It’s easy to take the people in our lives for granted or get caught up in petty arguments, but by focusing on the big picture and working through challenges together, we can build stronger and more meaningful connections.

If you make an effort to build strong relationships with your family and friends, those relationships will only grow stronger over time.

Playing the long-term in your finance means prioritising saving and investing for the future.

It also means building up your financial reserves through a diversified portfolio of stocks, bonds, and other assets, creating an emergency fund, and preparing for future expenses like retirement.

If you invest $100 per month in a mutual fund that earns 8% per year, your investment will be worth over $100,000 in 30 years.

If you read at least one book per month, learn from smart people weekly via newsletters, and listen to some of the best podcasts about topics you care about, your knowledge will grow exponentially.

Reading for just 15 minutes a day can lead to 10–20 books a year can significantly increase your knowledge and understanding of the world.

Similarly, if you’re trying to improve your health and fitness, crash diets or extreme workout routines may produce fast results, but they are often difficult to maintain and can lead to burnout or injury.

Reem Acra was right, “Anything that works well or has long-term success is never done quickly.”

A more sustainable approach would be to focus on making small, consistent lifestyle changes, such as eating a balanced diet and incorporating regular walks and exercise programs you can commit to into your routine. Over time, these changes can add up and significantly improve your health and well-being.

Take the long view to take control

“The obsession with instant gratification blinds us from our long-term potential.” — Mike Dooley

When we commit to a long-term game, we have a sense of control over our lives. We are no longer adrift in the sea of uncertainty. We know what we want and are taking steps to achieve it.

This sense of control can reduce stress and anxiety, which can benefit our overall well-being.

Committing to long-term games is a better approach to invest in yourself and set yourself up for a successful and fulfilling life.

Ultimately, playing the long-term game is about taking responsibility for our lives and futures.

It means recognising that we have the power to shape our destinies and that our choices today will have a lasting impact on our lives. By playing the long-term game, we can create a better, more fulfilling life for ourselves and those around us.

When we invest our time, energy, and resources into something consistently over time, we create a compounding effect that multiplies our returns exponentially.

This means that even small, incremental improvements made consistently over time can lead to significant results in the long run.

“Never let a short term desire get in the way of a long term goal,” Curtis Martin said.

Taking the long view is a fundamental principle that applies to all aspects of life. By consistently investing in ourselves and our goals, we can create a compounding effect that leads to significant returns over time.

We can create a life of abundance, growth, and fulfilment by recognising the power of small, incremental gains over time.

James Clear said, “Think long-term. Act short-term.”

So, whether you seek to build wealth, improve your personal growth, advance your career, or deepen your relationships and knowledge, remember that all the returns come from compound gains.

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To our common journey,

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Be epic!

Thomas